The Central Bank of Chile reports an annual monetary policy rates (target interbank rate) that is updated each month. There are scheduled monthly meetings to discuss possible adjustments to the rate. The primary objective of monetary policy is to stabilize prices. Figures are percentages and are not seasonally adjusted (NSA).

The rate is adjusted according to inflation targeting and flotation schemes. The scheme is used to keep the annual inflation of the IPC around 3% with a tolerance range of plus/minus one percentage point. Monetary policy has a countercyclical nature that reduces inflation volatility.

Having an inflation target still has short-term effects on the economy. The inflation target is defined for 12-month variation of the Consumer Price Index (IPC) by the National Institute of Statistics (INE).

Monetary policy decisions are made by the BCC Council. The schedule of meetings is announced 6 months in advanced. There may be Extraordinary meetings that are unannounced.

There are two main reasons for changing the monetary policy rate:

Projected inflation is away from the inflation target.

Validation of an expected trajectory if there are no developments since the previous meeting.